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Car Rental Service Market

Car Rental Service Market by Car Type (Economy Cars, Compact Cars, Luxury Cars, Intermediate Cars, Premium Cars), End Use (Intercity, Intracity, On-Airport), Consumer Type (Business, Leisure), Booking Mode (Offline Access, Mobile Application, Internet Access), Sector (Organized, Unorganized) and Regions for 2021-2031

Car Rental Service Market by Car Type (Economy Cars, Compact Cars, Luxury Cars, Intermediate Cars, Premium Cars), End Use (Intercity, Intracity, On-Airport), Consumer Type (Business, Leisure), Booking Mode (Offline Access, Mobile Application, Internet Access), Sector (Organized, Unorganized) and Regions for 2021-2031

Car Rental Service Market - Analysis, Outlook, Growth, Trends, Forecasts

Car Rental Service Market Outlook—2021-2031

[300 Pages Report] The global car rental service market reached a valuation of US$ 127 Bn in 2020. Sales are forecast to grow at a 7.2% CAGR, pushing the market size to US$ 134 Bn in 2021.

Attribute

Details

Car Rental Service Market Estimated Size 2021

US$ 134 Bn

Car Rental Service Market Value-Based CAGR (2021-2031)

7.2%

Car Rental Service Market 2020-2021 Year-Over-Year Growth

5.7%

Car Rental Service Market Top Players Share in 2021.

6%-15%

Growing demand for luxury cars for short-term transportation services is expected to augment growth of the market in the forthcoming years. Besdies this, increasing participation in recreational activities among millennials is expected to continue boosting the market over the assessment period.

As per Future Market Insights (FMI), sales of car rental services represent 1-3% of the global transport market.

2016-2020 Global Car Rental Service Market Outlook Compared to 2021-2031 Forecast

Advancements in technology are enabling the expansion of web-based sales channels, which is resulting in higher sales in the market. Online platforms allow customers to rent a car anytime and anywhere. They also assist the renter in initiating and manageing their reservations and payments on the go from a smartphone or tablet.  

The car rental service business is a vision of a more flexible, faster, and responsive industry. Players such as The Hertz Corporation, Enterprise Holdings Inc., Avis Budget Group, and others already utilizing updated technologies to improve their customer experience as well as service.

For instance, National Car Renta, a subsidiary of Enterprise Holdings. Inc., has come up with the latest version of its National app. The app allows customers to skip the line and pick the car of their choice where it’s available. It also allows customers to select the before they arrive at the car rental location.

Further, opaque renting is a booking platform that allows online customers to offer the value they need to pay for a specific travel-related product or service without knowing the brand. The brand is revealed after the customer makes the online purchase. This platform gives rental car companies a chance to improce sales and to use their fleet to full capacity.

These trends are gaining traction amaong market players as consumers are seeking more cost-effective car rental services. Technological advancement in mobile capabilities, combined with the development of web-based media reinforces the opaque customer’s position and draw more cost-driven customers toward the opaque booking channel.

Backed by the aforementioned factors, sales are projected to increaset at a healthy 7.2% CAGR over the assessment period.

How Increasing Usage of Online Platforms is Pushing Sales?

Car rental services have become popular all around the globe, owing to easy booking and availability through online platforms. Vacationers are inclining towards the utilization of online booking platform as it provides an easy, hassle-free money transfer facility through digital payment, along with live tracking and enhanced safety. The increasing number of smartphone users and growing penetration of the internet plays a crucial role in the car rental services demand.

Daily commuters prefer online platforms to book shared cabs for office commute or riding within the city. Companies like Lyft, GoJek, Uber, Careem, and BlaBla Car offers a ride-sharing option, which is gaining traction among consumers. Besdies this, discounts and offers given by players on online bookings are attracting more customers, thereby augmenting growth of the market.  

In addition to this, governments in various countries such as the U.K., Norway, France and New Zealand are taking initiatives to reduce carbon emissions by encouraging the adoption of electric cars. These initiatives are compelling manufacturers to focus more on sustainable operations, which in turn is reducing the overall cost of each trip.

Country-wise Insights

How Big is the Opportunity in the U.S. for Car Rental Services Market?

Rising number of recreational activities and excursions for work in the U.S., both locally and globally, is among the key factors that are driving sales in the market. Consumers are shifting towards to reduce costs of transportation, which is further boosting sales in the country.

The presence of popular car rental service providers in the country, such as The Hertz Corporation, Enterprise Holdings Inc., Avis Budget Group, Getaround Inc., and among others is expected to augment the growth of the market in the forthcoming years.

What Will be the Demand Outllook in the Asia Pacific Car Rental Services Market?

Sales in East Asia and South Asia are projected to increase at a CAGR of 10.8% and 8.8% respectively between 2021-2031. The expansion of tourism in China and Japan is expected to create opportunities for growth over the assessment period.

Furthermore, improvemnets in the road safety infrastruction in India is expected to boost sales in the country. Besides this, growing demand and availability of luxury car rental services in china, Japan and India will complement growth of the market in the forthcoming years.

How Will the U.K. Car Rental Services Market Fare?

The U.K. is expected to account for a dominant share in the Europe car rental services market owing to the influx of global tourists in the country. Infrastructural growth, a rise in government spending, and the flourishing medical tourism sector in European countries will fuel the demand for car rental services.

Factors such as easy booking of rental cars through online channels, increasing globalization of corporate operations, growth in the travel and tourism domain, air travel, and shifting preference towards comfort travelling are influencing the growth of market in the U.K.

Category-wise Insights

Why Economy Cars are Most Preferred?

Based on car type, sales in the economy cars segment are expected to increase at a considerable rate over the forecast period. The sharing/pooling concept also attracts customers with a pre-determined mindset for a less expensive ride.

These factors along with the high availability of such cars are accelerating the demand for economy cars in the market. Growing health & environmental consciousness is also compelling consumers to opt for environmental-friendly products and services. Rising concern regarding pollution has also fueled the trend of ride sharing to reduce emissions, which is expected to continue driving sales in this segment.

Which is the Leading End Use Segment?

In terms of end use, the on airport segment is expected to account for a lion’s share in the global car rental services market. Growth can be attributed to increasing participation in leisure and business travel among international and domestic consumers.

Which is the Most Preferred Booking Mode?

In terms of booking mode, sales in the mobile application segment are projected to increase at a remarkable pace over the forecast period. Growing number of mobile-based platforms such as Uber, and Lyft will countinue furling sales in this segment.

Competitive Landscape

Leading players operating in the market are aiming to improve their service offerings by providing discounts on airport rides, and other discount coupons. Mergers and acquisitions are also identified as key strategies adopted by players in the car rental market. For instance:

  • In January 2020, Localiza Rent-A-Car SA announced a merger with Car Rental Systems to meet its strategic guidelines for simplification and administrative and financial rationalization.
  • In September 2020, Enterprise Holdings, Inc. had entered into an agreement with The University of Pittsburgh. The partnership would help the University of Pittsburgh reduce costs and upgrade its fleet with alternative energy vehicles, which would further support the university’s commitment to making the campus carbon neutral by 2037. The company would lease a total of 268 electric and hybrid vehicles to the University of Pittsburgh, allowing them to enjoy the benefits of new, well-maintained vehicles that use greener vehicle technology.
  • In May 2020, to help the people who are in need of the blood during COVID-19 pandemic Hertz Global Holdings, Inc. had partnered with OneBlood. All blood centres are regulated by the FDA and have followed strict guidelines on how to operate. OneBlood meets all FDA guidelines and all team members had followed strict safety protocols. Hertz Global Holdings, Inc. had provided $25 rental vouchers to all donors.
  • In 2019, the Europcar Mobility Group, a France-based car rental company, had acquired a 100% stake in the U.S.-Fox Rent A Car Company, to expand its customer base of 15 million by 2023.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

US$ Million for Value

Key Regions Covered               

North America, Latin America, Europe, East Asia, South Asia, Oceania Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Poland, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Vietnam, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, South Africa

Key Segments Covered

Car Type, End Use, Customer Type, Booking Mode,  Sector, and Region

Key Companies Profiled

  • Enterprise Holding Inc.
  • The Hertz Corporation
  • Avis Budget Group
  • Europcar Group
  • Carzonrent
  • Sixt SE
  • Enterprise Rent-A-Car
  • AI Futtaim Group
  • Localiza-Rent A Car
  • Eco Rent a Car
  • GlobalCARS
  • Others

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

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Car Rental Services Market by Category

By Car Type:

  • Economy Cars
  • Compact Cars
  • Intermediate Cars
  • Premium Cars
  • Luxury Cars
  • Others

 By End Use:

  • Intercity
  • Intracity
  • On-Airport
  • Others

By Consumer Type:

  • Business
  • Leisure

By Booking Mode:

  • Offline Access
  • Mobile Application
  • Other Internet Access

By Sector:

  • Organized
  • Unorganized

By Region:       

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East and Africa (MEA)

Key Questions Answered in the Report

What is the current car rental services market size?

The global car rental services market is expected to reach US$ 134 Bn in 2021.
North America currently leads the global market for car rental services, holding more than 40% of the total market share.
Some of the leading companies in the car rental services market are Enterprise Holdings Inc., The Hertz Corporation, Avis Budget Group, Sixt SE, and Localiza-Rent A Car.
The East Asia car rental services market is projected to grow at a 10.8% CAGR over the forecast period.
The car rental services market in China is anticipated to expand at 12.2% CAGR over the forecast period.

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